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Carillion to go into liquidation after talks fail

Staff Writer |
The U.K. construction and outsourcing company Carillion said Monday it will go into compulsory liquidation, after crisis talks at the weekend failed.

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The company, its creditors and the government were trying to find a way to save the company, which runs public services at prisons, hospitals and schools, and is a key contributor to the building of the HS2 high-speed rail line.

"In recent days however we have been unable to secure the funding to support our business plan and it is therefore with the deepest regret that we have arrived at this decision," Philip Green, chairman of Carillion, said in a statement.

The move puts thousands of jobs at risk; the company employs about 20,000 in the U.K. and uses thousands of subcontractors.

Green said he understands the government will step in to fund the public services previously supplied by Carillion.

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